FLRC Board of TrusteesMinutes
April 9th, 2016
Meeting calledto order at 9:30 a.m. by President Sally Doherty
Board Members Present: Sally Doherty, Vic Dykstra, Mark MacDonald, Mark Robben, Sherry Ploor, Dave Stratford, Glen Post and Randy Taylor
Minutes from the 3/12/16 Regular Board Meeting were approved as distributed.
FLRC Board member re-alignment
Randy Taylor is in the process of being legally recognized as a property owner in Clatsop County.
Mike Nanson resigned from FLRC Board of Trustees on Wednesday April 6th, 2016
*Motion by Vic Dykstra: “Move to appoint Doug Barlow to the Board of Trustees for the remainder of Mike Nanson’s term.”
Sherry Ploor seconded the motion.
Motion approved unanimously.
Vic Dykstra appointed to Social Committee Chair
Employee Reports– Reports submitted, but not read in their entirety, were accepted and are appended to the minutes
Office Manager – Amanda Graham
Bookkeeping:
Accounts Receivables:
23 Members on Monthly/Quarterly Installment Plans totaling $20,005.82
11 Members Delinquent 2015-2016 Fiscal Years dues totaling $18,700.00
10 Chronically Delinquent Members (Prior Fiscal Years dues and fees) totaling $64,167.32
Receiving:
2015-2016 Fiscal Years Dues: $373,136.09
Prior Years Dues and Fees: $14,536.48
Title Transfer Fees: $16,000.00
Accounts Payables:
Total Expenditures 2015-2016 Fiscal Year to date $203,499.15
Communications
Disclosure Statement’s for Escrow: 6
Architectural Letters: 1
Website Updates as needed.
Operations – Travis Graham- #1
Board Reports– Reports submitted, but not read in their entirety, were accepted and are appended to the minutes
Vice President & Personnel – Mark MacDonald-#2
Treasurer – Randy Taylor
The snapshots of our current bank balances are as follows:
Checking Account: $15,197.10
Savings Account: $125,583.97
Total Operating Funds: $140,781.07
Reserve Cash Account: $76,975.53
Reserve CD Investments: $601,423.50
Total Reserve Fund: $678,399.03
This month we transferred $67,800.00 into our Reserve Account. This includes the $20,000 that we borrowed from Reserves last September and the $47,800 commitment we made for this fiscal year.
Spending
Since beginning this adventure as Treasurer my hope has been to discuss "spending" at each meeting. This was to help keep membership appraised of "where their money goes" and also an effort at building membership trust. I've attached a copy of the spending for your examination. Since we are half way through our fiscal year this should give us a pretty good picture of where our money goes. I'd like to highlight a couple of things for your consideration.
Total Employee Expenses: Through six payroll periods we are at 44.4% of budget. This does not include the IRA contributions. With these we will still be below the budgeted amount for the year.
General Expenses: The percentages in our "General" category can be misleading. The report shows that we've spent74.5% of the funds allocated for the year in the first six months. That's obviously a red flag. However, if you review the individual line items you'll notice a couple of things. First, "Utilities" and "Legal" are both over budget. And these percentages are accurate. We are definitely over budget in those two areas. "Insurance" shows we've spent 66.6% of our budget in the first six months. "Taxes" show we've spent 100% of our budget, and "Licenses and Permits" list 93% has been spent. All three of these expenditures involve significant one-time payments. We paid most of our insurance bills at the beginning of the fiscal year. We still make payments for our liability insurance. Our property taxes were paid completely in October, which is why they show 100%. And the same is true with licenses and permits. Most of these have already been paid. When you consider these areas we will be significantly less than 74% of budget.
Maintenance: When you look at the entire Maintenance budget we are at 45.8% of Budget. Less than the 50% you would expect half way through our year. However, a closer look indicates we have some problem areas. Expenditures for our Sewer System are at 164% of budget. Our Water System is at 76.4% of budget. Well over the 50% target.
What we are going to do is sit down with Vic, Travis and Kevin and determine whether these expenses are "expected" and recurring or an "anomaly". This will help us project our budget in these two areas for next year. Overall, Vic is doing a great job staying within budget. However, there are things that he'd like to do in Buildings and Grounds that he is not able to do because of our budget limitations. These too will help us project budget needs for next year.
The Budget Committee has made this their next task. With the help of our section leads we're going to begin preparing a budget to present to the membership. We've set some short-term goals to gather information and our goal is to have this information for members at the June Board Meeting.
Reserves:
As the Treasurer I think it's also time for the Board to begin our conversation about Reserves. Last year we paid for a Reserve Study. The entire process helped us gain a better understanding of Reserves. How they're used and how they are generated. FLRC was advised that, “as a community”, we need to maintain our Reserves at 70% to be considered a "healthy" community. This would have meant that we deposited $75,000 intoReserves for this fiscal year. I heard some member’s state, "we don't need to put $75K into Reserves!”To me this is like paying a doctor for his opinion and then deciding to ignore that opinion.
The Reserve Study needs to be reviewed annually. This does not mean a NEW Reserve Study. It means that the Board needs to review and discuss the study. As a Trustee we have a fiduciary responsibility to ensure that current members and future members share the Reserves equally. We can't ignore it now and then let new members 10 years from now endure the Reserve load for the HOA.
What all this means is that we need to have a plan that will ensure we remain at the 70% "Healthy" level and make up for our not doing that this year. We underfunded our Reserves this year by $27,200. Over the next 5 or 10 years we'll have to make up for this. The Board will have to decide on an acceptable length of time.
When you hear someone yell to ignore our Reserve Study please hear this: Ignore your doctor's advice! Because that is exactly what they're saying.
Accounts Receivables:
Payments have come in from all fronts this month! We received payments from several individuals who were delinquent for this year only. We also received money for dues from previous years. I'll have exact figures at the meeting on the 9th.
Oct '15 - Sep 16 / Budget / $ Over Budget / % of BudgetIncome
Membership Dues & Fee's
Annual Dues
2015-2016 Annual Dues / 373,136.09
Past Due's / 87.00
Annual Dues - Other / 12,867.21
Total Annual Dues / 386,090.30
Membership Dues & Fee's - Other / 1,582.27
Total Membership Dues & Fee's / 387,672.57
Miscellaneous Income / 145.00
Service Fee / 587.72
Title Transfer Fee / 16,000.00
Uncategorized Income / 851.00
Total Income / 405,256.29
Gross Profit / 405,256.29
Expense
Adjustment / 664.61
Bank Fee's / 1,030.55
Employee Expenses
Employee Continuing Education / 0.00 / 2,000.04 / -2,000.04 / 0.0%
Employee Net Wages & Taxes / 64,761.51 / 140,000.04 / -75,238.53 / 46.26%
Employer Payroll Taxes
Employer Payroll Taxes Federal / 3,907.70
Employer Payroll Taxes - Other / 2,209.07 / 15,000.00 / -12,790.93 / 14.73%
Total Employer Payroll Taxes / 6,116.77 / 15,000.00 / -8,883.23 / 40.78%
Health Care Compensation / 5,600.00 / 9,600.00 / -4,000.00 / 58.33%
Ins Worker's Comp / 1,646.89 / 3,524.04 / -1,877.15 / 46.73%
IRA Contribution / 0.00 / 4,200.00 / -4,200.00 / 0.0%
Payroll Services Fee / 539.00 / 1,055.04 / -516.04 / 51.09%
Total Employee Expenses / 78,664.17 / 175,379.16 / -96,714.99 / 44.85%
General
Accounting Services / 3,369.75 / 3,800.04 / -430.29 / 88.68%
Insurance
Flood Insurance / 6,577.00
Liability Insurance
Directors / 3,453.30
Crime / 693.00
Total Liability Insurance / 4,146.30
Property / 3,934.98
Insurance - Other / 0.00 / 22,000.08 / -22,000.08 / 0.0%
Total Insurance / 14,658.28 / 22,000.08 / -7,341.80 / 66.63%
Legal & Collections
Mileage Reimbursement / 29.45
Attorney Fees / 7,345.06
Collections and Filing Expenses / 646.33
Property Liens / 84.00
Legal & Collections - Other / 0.00 / 3,000.00 / -3,000.00 / 0.0%
Total Legal & Collections / 8,104.84 / 3,000.00 / 5,104.84 / 270.16%
Recur; Licenses, Dues & Permits / 3,191.70 / 3,399.96 / -208.26 / 93.88%
Office Expense
Communications
It/Website Support / 282.24 / 750.00 / -467.76 / 37.63%
Tech Hardware / 23.88
Voicemail / 40.52
Total Communications / 346.64 / 750.00 / -403.36 / 46.22%
Office Supplies / 678.35
Postage / 199.40
Office Expense - Other / 0.00 / 2,000.04 / -2,000.04 / 0.0%
Total Office Expense / 1,224.39 / 2,750.04 / -1,525.65 / 44.52%
Taxes
Property Taxes
Clatsop County / 579.77
Columbia County / 1,273.11
Total Property Taxes / 1,852.88
Taxes - Other / 0.00 / 1,853.04 / -1,853.04 / 0.0%
Total Taxes / 1,852.88 / 1,853.04 / -0.16 / 99.99%
Utilities
Electricity / 13,594.95
Garbage/Waste Management / 215.52
Phone, Internet & Fax / 3,533.27
Utilities - Other / 0.00 / 25,500.00 / -25,500.00 / 0.0%
Total Utilities / 17,343.74 / 25,500.00 / -8,156.26 / 68.02%
Total General / 49,745.58 / 62,303.16 / -12,557.58 / 79.84%
Maintenance
Aquatic Weed Maintenance / 0.00 / 7,500.00 / -7,500.00 / 0.0%
Buildings & Grounds
Roads & Ditches / 94.45
Shipping Expenses / 12.37
Buildings & Grounds - Other / 2,424.50 / 16,818.00 / -14,393.50 / 14.42%
Total Buildings & Grounds / 2,531.32 / 16,818.00 / -14,286.68 / 15.05%
Dredge / 1,436.09 / 7,500.00 / -6,063.91 / 19.15%
Spoils Removal / 23,312.89 / 41,853.00 / -18,540.11 / 55.7%
Equipment
Fuel
Mileage Reimbursements / 371.23
BioBlend / 1,882.10
Diesel / 351.49
Vehicle Fuel / 3,373.37
Fuel - Other / 1,534.35 / 14,400.00 / -12,865.65 / 10.66%
Total Fuel / 7,512.54 / 14,400.00 / -6,887.46 / 52.17%
Safety Supplies / 88.39
Service Charge / 7.46
Shop Supplies / 313.17
Shop Tools / 109.53
Vehicles- Repairs and Supplies
Boat Repairs / 167.60
Vehicle Repairs / 124.60
Total Vehicles- Repairs and Supplies / 292.20
Equipment - Other / 151.93 / 6,450.00 / -6,298.07 / 2.36%
Total Equipment / 8,475.22 / 20,850.00 / -12,374.78 / 40.65%
Sewer System
Shipping / 250.36
Sewer System - Other / 2,712.29 / 5,149.92 / -2,437.63 / 52.67%
Total Sewer System / 2,962.65 / 5,149.92 / -2,187.27 / 57.53%
Water System
Shipping / 15.01
Water System - Other / 7,958.27 / 11,400.00 / -3,441.73 / 69.81%
Total Water System / 7,973.28 / 11,400.00 / -3,426.72 / 69.94%
Total Maintenance / 46,691.45 / 111,070.92 / -64,379.47 / 42.04%
Reserves
Truck / 6,000.00
Sewer System / 14,507.20
Water System / 1,257.20
Total Reserves / 21,764.40
Taskforce for FLRC
FL Project Solutions / 5,923.77 / 30,000.00 / -24,076.23 / 19.75%
Long Range Planning / 0.00 / 0.00 / 0.00 / 0.0%
Social Expenses
Fireworks / -1,285.00
Social Expenses - Other / 299.62 / 1,999.92 / -1,700.30 / 14.98%
Total Social Expenses / -985.38 / 1,999.92 / -2,985.30 / -49.27%
Total Taskforce for FLRC / 4,938.39 / 31,999.92 / -27,061.53 / 15.43%
Total Expense / 203,499.15 / 380,753.16 / -177,254.01 / 53.45%
Net Income / 201,757.14 / -380,753.16 / 582,510.30 / -52.99%
Director Reports–Reports submitted, but not read in their entirety, were accepted and are appended to the minutes
Buildings & Grounds –Vic Dykstra- #3
Legal - Mark Robben-#4
Committee Reports– Reports submitted, but not read in their entirety, were accepted and are appended to the minutes
Architectural – Dave Stratford- #5
The Architectural committee will meet first Saturday of the month at 8:30 a.m. in FLRC Clubhouse.
Budget– Randy Taylor- #6
Firewise – Kathy Cardona-#7
Firewise Work Day - May 7th, 2016 at 9:00 a.m. to 1:00 p.m.
- Reminder: All yard cleanup are Firewise work hours (even if they are not done on Firewise Work Day)and are eligible for FLRC Firewise credit. Please report all clean up hours (adult and children) to Kathy Cardona at 755-2245 or .
Neighborhood Watch- Doug Barlow-#8
Project Solutions Team- Vic Dykstra-#9
Safety- Mark MacDonald-#10
Social –Carolyn Taylor-#11
Unfinished Business
McMillen/Jacobs agreement – Vic Dykstra
*Motion by Vic Dykstra “Move to accept the “Fishhawk Lake Reserve and Community Contract for Engineering Services with McMillen-Jacobs and Associates” upon pending FLRC insurance acceptance to move forward with engineering work.”
Mark Robben Seconded the Motion.
Glen Post opposed.
Motion Passed.
Collections Policy– Mark Robben: Tabled to April 16, 2016 Special board meeting
CFE Agreement – Mark Robben: Tabled to April 16, 2016 Special board meeting, Mark will look into additional collection agencies.
Reserve account payments, purchases and transfers – Randy Taylor
Informed the Board of Trustees $22,753.57 will be transferred to the Operating account to compensate Reserve line item expenses this Fiscal Year to Date.
Policies, Violations, Complaints & Response –Glen
A Complaint form will be given to the office to distribute to the membership.
New Business
Authorization of OWEB assistance Grant – Vic Dykstra
*Motion by Glen Post: “Move to authorize Vic Dykstra to co-sign as a representative of Fishhawk Lake Reserve and Community on OWEB Grant application for FLRC.”
Sherry Ploor Seconded.
Motion Passed Unanimously.
Special Membership meeting for FLPS – Vic Dykstra
Discussion: Special Membership meeting to discuss FLPS with membership in 2016 TBA.
~Special Board Meeting to be held April 16th 2016 at 9:00 a.m. to discuss Task #1 and Collection Policy.
Water Hook up policy– Glen Post
Lake Members Open Forum:
During Open Forum, each member may address the Board for up to three minutes. A Trustee or Employee may briefly respond to statements made or questions posed. Members are encouraged to remember that the FLRC board is comprised of volunteers who should be treated with courtesy. Members are also encouraged to communicate their concerns to the board in advance, so any relevant research necessary to answer questions can be done before the meeting. Please note that no action will be taken on non-emergencyissues, but may be addressed at future Board Meetings.
- No member comments.
Good of the Order-
None.
Adjournment- Meeting adjourned by Sally Doherty at 1:11 p.m.
Minutes recorded by Amanda Graham
April 9th, 2016 Board Meeting Reports
The submitted reports maynot have been read in their entirety,therefore appended to the minutes below
- Operations- Travis Graham
March was a good end to winter and a nice start to spring around the lake. We had a few ongoing projects finish and a few more started. The mowing has begun. Water usage has increased as more families come out to enjoy the lake.
The big news this month is the death of the old Ford and its replacement with a new to us 2000 Chevy Silverado half ton pickup. This is a great addition to the Fishhawk fleet. It is a big relief to be done constantly tinkering with the ford just to keep it going.
We had a lift station that was down for several weeks waiting on parts but it is now back up and running.
We finally got the right configuration of pumps for our raw water building. This has been an ongoing project for many months that is now finished.
We designed and fabricated a new security hatch on the water tower as part of our ongoing security and emergency response plan.
Water totals for March
770,500 gal made
12.74 inches of rain
- Personnel
Fine tuning Operations job descriptions and employment agreements.
This week will conduct first monthly review with our Operations employees of revised job descriptions and any performance-related issues.
Working with Portland Payroll to incorporate new sick leave regulations into our Paid Time Off policy draft.
- Buildings and Grounds – Vic Dykstra
Pumps: The new pumps finally arrived and are producing the promised results that were so elusive. Bigger motors on the same pump originally sent and 60 gpm was met. No longer using the sump pumps that tended to leak when they failed.
An overheating problem was addressed by an electrician.
The lift station parts are on back order. The lift stations continue to be pumped manually twice each day until the parts arrive.
Warmer weather starts the grass-growing season. Mowing has started.
Dredge repairs began with delivery of the dredge head for repair work. A list of repairs to accomplish has been made. Travis will be working on these so the dredge is ready to go by June 15th.
Limbs from the last windstorm are being cleaned up.
The tennis courts are being cleaned and moss removal in progress.
- Legal- Mark Robben
The better half of the Legal Committee has spent an easy 30 hours/week working on the OWEB grant for the dam project.
Things we’ve worked on:
1. Board eligibility question.
2. Water certificate upgrade/renewal. He says it will be completed and filed with the State by the end of May.
3. Long term bad debt. I had hoped to have an updated list to the board, but haven’t yet. Of the names we were given, we are down to just five or six.
4. Revise collections policy. I haven’t done so. I got an Adobe product to edit PDF’s but I can’t figure it out. I hope to have a much simpler, “generic” version by Saturday.
5. Property with the culvert issue. Will follow up with them.
I am also attaching the CFE from VF Law. I would like to discuss it and vote on it. We have gone as far as we can on the long-term bad debt accounts without spending a lot more time and money (mostly in data banks access). I think it’s time to turn it over to professionals.
Also including a flow sheet on how to deal with grievances, problems brought to the board. Hopefully, this will aid us in being consistent in such matters.
- Architectural Committee – Dave Stratford
The Architectural Committee is now meeting on the 1st Sat of the month at 8:30 am at the clubhouse. Everyone is welcome to attend, please bring coffee, as I am barely awake. This should be the standard time for the near future.
The Architectural Committee heard three proposal requests for this meeting:
A presentation by a member wishing several variances on the proposed construction of a new house. The request for a 3/12 pitch roof was discussed and unanimously voted down. The AC is intending to stay with the intent of 5/12 pitch for roof designs. The request for variance on setback to the creek and the road were also denied. The AC has no authority to vary the setback requirement.
A request for a fence from the corners of a house to within 5 feet of the lake shoreline was denied unanimously due to fence and shore distance restrictions.
A request for a manufactured shed to be placed on the property line of a house was unanimously denied due to aforementioned setback requirements.
Members of the committee viewed the intended placement of a garage observing setbacks. A grade plan is requested.
New AC manuals are being produced with all documentation and opinions of law, as well as procedures and frequently asked questions. All members will be issued new manuals to all be on the same page and references.
Several non-conformance issues were discussed as well as potential verbiage changes to incorporate in future CCRs.
- Budget – Randy Taylor
The Budget Committee would like to begin the preparation of a budget for 2016-2017. We've set up a goal of being able to present it to the board prior to the June Board meeting and the Membership, at the June Board meeting. Realistic?
Our first step is to ask the different leaders to spend some time looking at their budget responsibilities. For example, the Personnel Committee should consider employee expenses; this would include possible raises and bonuses.
I would ask Vic to sit down with Travis and Kevin and look over Buildings and Grounds expenses for the first six months. Were the expenses expected? Recurring? An anomaly? What projects do we want to get done for next year and will they be a one-time expenditure?
What does Legal, the Secretary, Policies and Revisions anticipate for legal costs next year?